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Supply chain partners exchange information to achieve shared performance goals. However, information sharing is fraught with risks and concerns around organizational data privacy and security. Extant studies provide connectivity and supply chain partners’ willingness to share information as factors driving information-sharing. In an Industry 4.0 supply chain, technology provides the capability to share information across organizations. Literature highlights the role of technological capabilities and privacy by design in addressing the risks and concerns in information sharing that may influence the willingness of supply chain partners to share information. We introduce the framework of organizational privacy calculus comprising privacy by design to balance the needs and willingness to share information against environmental dynamism, regulations, and data sensitivity risks that can impact information sharing in the supply chain and procurement. We use OIPT and privacy calculus as theoretical lenses to derive empirically the balancing framework. The contribution of our study is twofold: proposing an organizational privacy calculus that focuses on organizational information sharing and highlighting the importance of privacy by design to alleviate risks of sharing sensitive information. The study empirically establishes that technology capabilities and privacy protection measures are essential for enhancing inter-organizational willingness to share information to balance against concerns.
Dey et al. (2024) studied this question.